According to multiple threads on Reddit, Xbox One consoles are being factory reset, apparently due to the latest Xbox One update. This Xbox One update bug does not appear to affect anyone receiving updates in the Xbox Insider Program, just regular updates to Xbox One. Usually, you'd think it'd be the other way around.
More Reddit posts are popping up complaining about the factory reset problem, even after recently playing games on their Xbox One. Another Redditor even got his 12-month Xbox Live Gold subscription cancelled too (Although he bought his Xbox Live subscription from a third-party seller). No word from anyone else on Reddit if their Xbox Live subscriptions purchased through Microsoft have been cancelled too.
Microsoft has yet to release an official statement on the issue or when an Xbox One update will come to fix the issue. On Twitter, there appears to be flurry of tweets to Xbox Support, but users are receiving generic replies while Microsoft figures out the precise problem.
Has anyone else experienced this factory reset bug after the latest update? Let us know in the comments.